Following the leak of internal documents of Panama law firm Mossack Fonseca which has reignited the debate about offshore financial centers, Cayman Finance said Tuesday that Cayman has a proven track record on transparency and cross-border cooperation.
Jude Scott, CEO of Cayman Finance, in a statement, said the revelations showed the need for a clear understanding of the role of financial centers in the global economy.
“Cayman is not a secrecy jurisdiction. We have a clear and strong commitment to transparency,” he said. “The Cayman Islands is a global financial hub that efficiently connects law abiding users and providers of capital and financing around the world – benefiting both developed and developing countries.”
He said Cayman benefits onshore jurisdictions by enabling them to be competitive in international trade and in facilitating effective inward investment to help grow those economies.
On the regulatory side, Mr. Scott said, the Cayman Islands financial services industry continues to play a leadership role and sets global standards to fight financial crime.
“Financial crime is a serious global problem that requires a unified legal, social and law enforcement response,” he said. “One of the best weapons against illegal activities and tax evasion is effective transparency and cross-border cooperation. This is where the Cayman Islands has a proven track record.”
Mr. Scott said Cayman had put in place a robust regime for regulation and cross-border cooperation which surpassed many of the world’s top international financial centers.
“The Cayman Islands government, its regulator, the Cayman Islands Monetary Authority, and private industry, have worked continuously over many decades with overseas governments and international authorities to ensure Cayman is a premier international financial center and a strong partner in combating global financial crime.”
The Cayman Finance CEO further noted that Cayman’s system of collecting beneficial ownership information was better than the register demanded and implemented by the U.K.
“Cayman’s current corporate services provider verified beneficial ownership system is world-class in providing for due diligence know-your-customer checks and is superior to the U.K.’s proposed non-verified, self-reporting public registers,” Mr. Scott said.
“When issues arise, as they do in every jurisdiction, Cayman consistently engages in a proactive and collaborative manner to ensure an appropriate international outcome is reached,” he added.